The Bitcoin Hash Rate Hit a Record Peak, and the Next Halving is Scheduled for 2023

The next half of Bitcoin’s block reward has been brought ahead in time because the Bitcoin hash rate just set an all-time high. On September 11th, the hash rate of the Bitcoin network achieved a raw value of 281.79 million, a rise that is suggestive of increased interest and an indicator of the vitality of the Bitcoin network. 

The halfway point was initially anticipated to occur in May of 2024, but if things continue, it will happen in the final quarter of 2023. The amount of freshly created bitcoins miners get as a reward is “halved,” or cut in half, after every 210,000 blocks. The number of blocks that may be mined rises in tandem with the number of miners, which brings forward the date on which the reward is cut in half.

The reward for each block will be decreased to 3.125 bitcoins once the next halving occurs, down from its present value of 6.25 bitcoins. It is anticipated that all 21 million bitcoins will have been mined by the year 2140, at which point the halving process would end. Because the network has a deflationary effect, those who advocate for it say that the asset’s value will increase as more time passes.

The Deadline for Bitcoin’s Halving Draws Closer

Another halving is anticipated to take place in about 1.5 years; however, if the current rate remains unchanged, this window may be shortened by a few months. The total number of blocks on the blockchain now stands at 753,742, and this number is expected to rise to 840,000 before the next halving occurs.

The previous halving took place in May 2020, and the event called for an abundance of jubilation and celebration. The total number of Bitcoin transactions has increased by a factor of 50 in the two years that have passed since the last halving in 2016. Some people were concerned that cutting the number of miners in half would result in fewer people engaging in the operation, but it turned out that such worries were unwarranted.

Positive Trends are Seen in the Numbers

A favorable sign of the asset’s worth is that it has broken beyond the $21,000 barrier. Even though the mining business seems to be doing well, it has been reported that the industry’s revenue has dropped below $1 billion for the fourth month in a row.

Following the most recent halving, the average cost of doing a Bitcoin transaction skyrocketed by a factor of 647. Despite the current pessimistic market attitude, investors continue to have a positive outlook on the future of the asset since there is still a significant amount of time until the next half.